Tesla's Model S is now the fastest production car in the world: 0-100km/h in 2.5 seconds

The Tesla Model S P90D with Ludicrous mode is now the quickest car on the market thanks to a new battery upgrade, CEO Elon Musk announced on a call with journalists Tuesday.

Musk announced a new 100 kWh battery option for the Model S with Ludicrous modes, allowing it to accelerate to from zero to 100km/h in 2.5 seconds, Tesla claims. That makes it the third-fastest accelerating car ever produced, placing it behind the LaFerrari and the Porsche 918 Spyder.

Both the LaFerrari and Porsche 918 Spyder can no longer be bought new, making the Tesla Model S with Ludicrous mode the fastest on the market, beating out other combustion engines.

Tesla drivers who currently own a Model S P90D Ludicrous can upgrade to the 100 kWh packs for $US20,000. Those who ordered a P90D Ludicrous but haven’t received it yet can upgrade for $10,000.

For those looking to buy now, the Model S P100D with Ludicrous mode starts at $134,500. The Model X P100D with Ludicrous Mode starts at $US135,500.

The reason it’s more expensive for those who already have a Model S P90D Ludicrous is because the battery has to be recycled.

The battery upgrade also extends the range of the Model S to 315 miles (525km), making it the first electric car on the market to exceed 300 miles (500km) of range.

Competition is mounting in the electric car space as more automakers are racing to release vehicles with longer ranges. Volkswagen is planning to release an all-electric car in October that could have as much as 372 miles of range, and Porsche is working on a Tesla killer with 300 miles of range that could pop up in showrooms in 2019.

The new battery option doesn’t come as a surprise. Dutch blog Kenteken.TV reported earlier in August that RDW, the Dutch authority responsible for vehicle registrations, has approved a 100 kWh battery option for both Tesla cars.

Additionally, a hacker found a mention of a P100D in the software that runs the cars, hinting that a Tesla with a more powerful 100 kWh battery could be on the way, in March.